Source · Select Committees · Public Accounts Committee
Recommendation 10
10
We asked HMRC whether the Coronavirus Job Retention Bonus scheme had been cancelled or just...
Conclusion
We asked HMRC whether the Coronavirus Job Retention Bonus scheme had been cancelled or just delayed.26 The scheme would have granted a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme and who remained continuously employed through to 31 January 2021. The OBR had estimated the scheme would cost £6.1 billion. This was lower than HM Treasury’s estimated cost of up to £9.4 billion because the latter estimate represented a maximum rather than a central estimate, so the figures are not directly comparable.27 HMRC told us that, as the CJRS measure was originally planned to stop at the end of October, the bonus scheme was meant to have then provided an incentive for employers to keep people on their payrolls. But because the CJRS measure had now been extended to 31 March, the Chancellor announced there was no need for the incentive of a bonus payment in January.28 HMRC recognised our concerns about businesses’ ability to meet their tax liabilities without any payment from the bonus scheme but reiterated the reasons the scheme was no longer proceeding. HMRC explained that there has been no announcement about the arrangements that will be in place once the CJRS measure has expired.29 HMRC subsequently told us that, as the original purpose of the Job Retention Bonus had fallen away with the extension of the CJRS scheme, the Government had announced on 5 November 2020 that the Job Retention Bonus would not be paid in February 2021 and that it would redeploy a retention incentive at the appropriate time.30 26 Qq 38–39 27 Letter dated 3 December from HMRC Permanent Secretary to Chair; C&AG’s Report, Figure 10 28 Q 38 29 Qq 38–40 30 Letter dated 3 December from HMRC Permanent Secretary to Chair 12 HMRC performance 2019–20 2 The impact of COVID-19 on HMRC’s operations HMRC’s estate strategy
Government Response
Acknowledged
HM Government
Acknowledged
2. 1 The government agrees with the Committee’s recommendation. Ta rget implementation date: March 2021 2.2 The government has had to balance providing longer-term certainty on the schemes with the need to be responsive to the evolving impact of COVID-19 and ensure economic support is tailored to the latest circumstances. The government's principle has always been that financial support will follow the path of the virus. This will sometimes mean reviewing policy at short notice where the nature of the pandemic has changed significantly, such as when the CJRS was extended in October 2020. 2.3 The government is committed to providing as much clarity and forewarning as possible on support arrangements. For example, in December 2020, details were announced of the extension of CJRS to the end of April 2021, on its current terms. At the Budget 2021, the Chancellor gave further certainty to businesses, allowing them to plan ahead with confirmation that the CJRS and the Self-Employment Income Support Scheme (SEISS) would continue until September 2021 2.4 The department’s approach to operational communications to support successful implementation of the schemes has been based on four stages - announce, prepare, launch and support - with proactive communications across channels including stakeholder engagement and roundtables, emails to millions of customers, MPs, stakeholders and agents, social media awareness and calls to action, published guidance and webinars. This has ensured awareness of the schemes, that customers know how to check if they are eligible, what action they need to take and by when, and where they can find further support. This includes helping customers to prepare in advance for making claims under the schemes. 2.5 The department continues to adapt their approach based on customer and stakeholder feedback and will write to the Committee in more detail in March 2021, setting out this approach and lessons learnt.